Standard Bank Group lists oil warrants
Standard Bank Group has announced the listing of oil commodity reference warrants in South Africa.
These warrants, the first of their kind for local retail investors, follows the successful launch and listing of Standard Bank Group's other commodity reference warrants listed over platinum and gold.
Standard Bank Group is South Africa's leading warrant issuer and as a market maker for these warrants will provide liquidity allowing investors to effectively enter and exit positions.
Brett Duncan, Director of Retail Equity Derivatives, Standard Bank Group, says: "These warrants give local investors access to changes in the rand price of one of the world's most liquidly traded commodities. The warrants are available in both calls and puts, allowing investors to take advantage of positive and negative movements in the rand oil price."
Warrants allow investors to put down a small amount of capital but then have the benefit of geared exposure to the rand value of the underlying, which in this case is the rand oil price.
"With all things being equal a small percentage change in the commodity or the rand exchange rate will result in a much larger percentage change in the price of the warrant. Warrants are a great trading vehicle for retail investors," says Mr Duncan.
Information on warrant pricing
JSE Codes OILSBA OILSBP
Underlying Instrument ZAR NYMEX WTI ZAR NYMEX WTI
Exercise Price R 625.00 R 575.00
Cover Ratio 125 100
Warrant Style European Call European Put
Exercise Date 07-Jun-11 07-Jun-11
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